A Merry Christmas and a Happy New Year to all my readers. Looking back on the blogs for the year one popular subject has been Northern Rock, the British mortgage lender, which needed rescuing by Her Majesty's Government. There has been some recent comment that a "market solution" should have been applied, ie let the Newcastle-based bank go bust in September. Northern Rock was quite close to me because I lost a few bob on the shares, when I actually sold them.
I think Alistair Darling did the right thing of safeguarding the deposits and perhaps a temporary nationalisation will help right Northern Rock although some deluded shareholders want £4.10 a share. However the cookie crumbles, it does not look good for the reputation of the City. Darling's reputation as Chancellor has not been helped by the Northern Rock debacle. It is thought that he is just a cipher for UK prime minister Gordon Brown. The same Brown who says he just taking Xmas day off for his Christmas holidays and then spends a couple of weeks in Scotland.
Monday 24 December 2007
Friday 21 December 2007
I am trying to get my head around the inheritance tax changes!!
I am trying to get my head around the forthcoming changes in British inheritance tax. These were announced by UK chancellor Alistair Darling in his recent pre-budget speech. The inheritance tax threshold is to doubled to £600,000 and then slowly lifted to £700,000 by the year 2010.
In the edition of Internationalmarketing.co.uk dated November 8th, 2007 it was stated that "The rules are complex and the terms of everyone's will and their trusts, if they have them, are different. The important thing is to recognise that the tax regime has changed significantly and for the better but that people may need to act now to ensure their families derive the maximum benefit when they die.
The changes affect anyone with an estate more than £300,000 and increasingly when the figure get towards and over £600,000."
Inheritance tax is so complex in the United Kingdom but it would be quite simple to scrap it like in Australia.
In the edition of Internationalmarketing.co.uk dated November 8th, 2007 it was stated that "The rules are complex and the terms of everyone's will and their trusts, if they have them, are different. The important thing is to recognise that the tax regime has changed significantly and for the better but that people may need to act now to ensure their families derive the maximum benefit when they die.
The changes affect anyone with an estate more than £300,000 and increasingly when the figure get towards and over £600,000."
Inheritance tax is so complex in the United Kingdom but it would be quite simple to scrap it like in Australia.
Wednesday 19 December 2007
End of UK stock market growth, part two!!
In the previous blog I commended Chris Dillow's article in the December 14th-27th issue of Investors Chronicle, which examines the possibility of the British stock market going ex-growth. Performance has only held up due to the contribution of the tobacco, banking and mining sectors. Dillow notes that UK shares are cheap and the factor behind this is that investors have recognised the ex-growth nature of UK quoted PLC.
Factors include foreign competition and more money taken by the workforce.
Chris Dillow writes "John Terry, Brad Pitt and Jonathan Ross earn big money because their employers need them more than they need their employers." I dispute this. For instance, Arsene Wenger has kept the pay levels relatively down by transferring anybody who wants silly money such as Ashley Cole.
Another possible factor in the lack of growth in the British stock market is that pension funds are choosing UK gilts (government bonds) instead of equities.
Factors include foreign competition and more money taken by the workforce.
Chris Dillow writes "John Terry, Brad Pitt and Jonathan Ross earn big money because their employers need them more than they need their employers." I dispute this. For instance, Arsene Wenger has kept the pay levels relatively down by transferring anybody who wants silly money such as Ashley Cole.
Another possible factor in the lack of growth in the British stock market is that pension funds are choosing UK gilts (government bonds) instead of equities.
Has the UK stock market gone ex-growth?
Has the British stock market gone ex-growth? I read an interesting article by Chris Dillow in the Investors Chronicle, who noted that the only true performers in the
last twenty years were banks, tobacco and mining companies. Dillow noted that companies well-known for their innovation such as media and software had been poor performers.
I personally would not invest in the banks at the moment since they are suffering a few problems but maybe BAT and Imperial Tobacco look reasonable. Or rather than taking my amateurish advice, you could contact an
independent financial adviser.
Out of the banks you got to look at the ones, where the share prices have not fallen so much such as HSBC, Standard Chartered and Lloyds TSB. Again, caveat emptor, I am not giving investment advice I am just blogging on a sunny afternoon.
last twenty years were banks, tobacco and mining companies. Dillow noted that companies well-known for their innovation such as media and software had been poor performers.
I personally would not invest in the banks at the moment since they are suffering a few problems but maybe BAT and Imperial Tobacco look reasonable. Or rather than taking my amateurish advice, you could contact an
independent financial adviser.
Out of the banks you got to look at the ones, where the share prices have not fallen so much such as HSBC, Standard Chartered and Lloyds TSB. Again, caveat emptor, I am not giving investment advice I am just blogging on a sunny afternoon.
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